When it comes to investing, things can get complicated very quickly. But it doesn't need to be that way. This is the first in a series of podcast called "10 Steps to a Better Investment Experience" which offers ten ways to improve your experience with investing. Step #1 is Understand Market Pricing and one of the best ways to understand market pricing is a take a closer look at how a pencil is made. In 1958, Leonard E. Reed published an essay about the combination of miracles needed to create a pencil. We can relate that to the work of Eugene Fama called the Efficient Market Hypothesis. Fama wrote that professional investors trying to beat the market through stock picking always had a poor record. Why is that? Well, that’s where the pencil comes in.

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